Paypal Rate Increases.

PayPal is focused on helping your business sell more, with tools that can increase conversions and help keep your transactions secure. As our product offering and services continue to grow, we have made changes to our pricing that reflect these expanding capabilities. The update to our pricing in the US will take effect on August 2, 2021.


Here's how our rates are changing:

I saw it. More importantly ebay will see it too and raise their rates too.

decrease for online credit card payments where the item value is around $65 and up. Not much but at least it's something. Could be significant on more expensive material.

I'm a bit slow, so be kind.Not just PayPal, but any business.

How do they justify the gross cost difference between doing a $10 transaction, and doing a $1000 transaction, when electronically they involve the same amount of effort?

This happened at the start of covid when the city offices closed; so no drop-offs.
I saw they had electronic payment for property taxes. When I went to proceed, it said there would be a $55 charge (some % of bill) for the effort. So I put a forever stamp on the envelope, and mailed the check.

I really don't understand the cost justification for doing this business.
Thanks for any explination.
pat

What I find absurd is that as a payer (I buy stuff online, but do not sell), their new pricing structure doesn't affect me in the least (unless I am misunderstanding something) and whomever I buy from is at my mercy as to how I pay via Paypal. And thus, at my mercy as to how much profit they make on the transaction. I can say in all honesty that I don't know which of the listed categories my payments fall into.

Anecdote: We have vending machines with candy/drinks at work. Of course, the products cost more from the machine than from the grocery store. But $2.50 for a can of soda???? All the other things are similarly jacked up. Today, I saw the vendor filling the machines and asked him why the sodas were so much more expensive than anywhere else I've ever seen soda for sale. He said it was due to the convenience of me buying it at work. If I buy it, it is convenient to me wherever I am at that particular moment, though, right? He just kinda looked at me funny. Anyway, I don't buy out of those machines - I either bring soda/candy from home, or stop at the store on my way into work (RIGHT on the way). Or I can wait until lunchbreak (we aren't supposed to be eating/drinking while we are working anyway) and drive a couple blocks to buy whatever I want down the street.

I give you that anecdote because it seems to encapsulate most vendors' reasons for their prices being higher than by going the 'normal' way - convenience. Ever go to the local convenience store and see their prices? I suspect the stated PayPal reason would be: Convenience. You need to decide if you want to pay that much for that 'luxury'. Many payment methods are based on a % of the amount being paid. Big payment, like property taxes? Big fee. Luckily, banks don't go by that philosophy for when you write a check, nor does the USPS for when you mail that check. Seems like a no-brainer to me (and to you too, now, it appears), but don't pay large bills via PayPal if you are footing the fee, except for in an extreme emergency when the 'convenience fee' is worth it.

"What I find absurd is that as a payer (I buy stuff online, but do not sell), their new pricing structure doesn't affect me in the least (unless I am misunderstanding something) and whomever I buy from is at my mercy as to how I pay via Paypal. And thus, at my mercy as to how much profit they make on the transaction"

Or they jack up their prices to cover their increase4d costs and it does affect you.

Don't worry - it's only temporary inflation. It will all go back down.

I got that message from PP yesterday too and eyeonwall is right. I've ridden out previous increases from ebay and PP but it's time to start re-thinking my prices. Year after year my margins get smaller and smaller.

Temporary inflation... now that's a joke.

patg23: There is no tangible reason for it, they market it as a convenience which in fact saves them money on multiple levels and then they charge you for it, because it's a convenience while telling you that it costs them to offer that method. It's a ripoff. We pay by check via US mail for most of our bills because of this.

Agreed.

Are we also mad at construction costs? gas stations? food stores? Walmart? Amazon? Or do we only call out ebay and PayPal? (Note that this community's existence relies upon income generated from ebay affiliate links.)

This year (2021) US consumer prices have risen at the fastest pace since 2008. https://www.ft.com/content/dfffa56a...b3d12ea72d9c

Inflation is a fact of life and over the next few years may become a major issue. But the good news is that in higher inflationary periods collectables like stamps and coins enjoy much higher valuations.
Don

Don, Agreed, I'm not happy with rise in costs across the board. Lumber has been a particularly sore subject for me... I just stuck with the topic as otherwise I would have ventured into highly volatile topics that should remain untouched here.

Good point on the inflationary periods impact on collectables, even though it can be a double edged sword.

No kidding! The inflation of the 70's and 80's is one reason many collections of that period have sheet after sheet of mint stamps. It was thought to be a good hedge against inflation.

Dan

For me, I am talking about ebay only. 99-ish% of my online purchases are on ebay and Amazon. I don't use PayPal on Amazon. On ebay, I generally buy at auction - not Buy It Now - so the bidders set the pricing. After that, it's about the P&H fee. Something too far from reasonable P&H just scares me off I won't buy a $10 stamp with $5 P&H - that is a bit of an exaggeration (actually, no exaggeration with some things I've seen), but the principal holds.

For the Buy It Now stuff, I can see this happening, though.

"On ebay, I generally buy at auction - not Buy It Now - so the bidders set the pricing"

Only if the item sells above the starting price. The seller sets he starting price. And sellers set the S&H prices and they could bump those a bit.

"Are we also mad at construction costs? gas stations? food stores? Walmart? Amazon? Or do we only call out ebay and PayPal?"

Last time I checked this site is about stamps, not housing food & gas, so we generally do not complain about those here. Also, those prices are set by supply and demand. ebay & PP set their own prices to what they think the market will bear. Tere are lots of different gas stations & grocery store that most of us can choose from, but our alternative to ebay & PP are rather limited.

Agreed 100%. And using your logic, this forum is about stamps, not ebay. There is a forum just for ebay, and folks can join all the other folks complaining about it.

The point of my post was context; and the context of costs rising is the entire economy.
Don

One cost that is definitely impacting all financial related institutions is fraud. A lot of fraud. It is off of the charts and the staffing and time spent on it is becoming overwhelming. Not saying it exclusively justifies these particular rate changes but there are costs that are spiraling upwards and will not necessarily be something these companies want to talk about much.